SCG Packaging Plc (SCGP) plans to spend 2.45 billion baht increasing its fibre packaging production capacity by 75,000 tonnes per year to meet demand growth as the economy recovers.
The new capacity is scheduled for commercial operation in the middle of 2023, said Wichan Jitpukdee, chief executive of SCGP.
Its latest investment is meant to level up SCGP's capabilities to deliver packaging solutions to customers, he said.
The investment will also help the company maximise its asset utilisation and further develop production techniques with help from robotics and automation technologies as well as printing applications.
Mr Wichan said the investment, which will be made through Thai Containers Group Company Ltd, a 70:30 joint venture between SCGP and Japan-based Rengo Company Ltd, will support machinery installation and be used as working capital.
SCGP expects demand for corrugated cartons in Thailand to grow, driven by more use of packaging in food and beverages, frozen, and processed food for export and hygiene products.
Foreign direct investment also continues to climb and drive exports under the government's investment promotion policy. These factors come as the economy is recovering, which contributes to the growth of the packaging industry, he said.
SCGP operates more than 50 packaging production facilities across Thailand, Vietnam, Indonesia, the Philippines, Malaysia, the UK and Spain.
The company earlier announced plans to use environmentally friendly hemp fibre in its production of packaging materials to add value to its products. Hemp fibre is strong and durable, with the potential to become a new economic crop in Thailand, said Mr Wichan.
SCGP will also continue to seek more opportunities through investments and expansion in India and the US because their markets are large and have potential for growth in the packaging business, he said.
